Want to become better at Positional Trading?
Read this thread...
12 Rules for Professional Positional Traders:
THREAD: 🧵
Collaborated with @niki_poojary
Rule 1:
"Trade with a stop loss of 2% on your capital for the week."
If you're losing more than 2%, chances are your reading of the market is wrong. The best would be to call it quits for that week.
(1/N)
Rule 2:
" Don't trade in the first 10 mins of any day"
Every day, there is far too much noise in the first few minutes. Positional traders should avoid some time in order to avoid being butchered right away.
(2/N)
Rule 3:
" Wait for candle closings in your timeframe"
Beware of wicks. They are buyer/seller traps. Rather wait for a good candle to close above your support/resistance to open/close a trade.
(3/N)
Rule 4:
" Don't lose more than 10% of your capital in a big gap"
The day I experienced the greatest Mtm loss to my capital was February 24. The figure was -47 lakhs. It was around 10% of my capital. Losing much more would set me back several months.
(4/N)